New oxygennewgrowth earlwilkinson

Earl J. Wilkinson Executive Director and CEO INMA @earljwilkinson

New Oxygen New Growth

Platform values DAILY TELEGRAPH | UNITED KINGDOM

Newspaper: deep read for older demos

Web: search-driven multi-media

Smartphone: breaking news, useful, fun

Tablet: curated experience

Ethnographic research

Why do people read less?

Print less relevant in routines

Shift in platform preference

No decline in news demand

Why “newspapers” NEWS LTD. | AUSTRALIA

Reader feedback

Not just print product

Instead, multi-platform service

Newspaper a brand promise


Entertain

Inform

Inspire

Change

Guide

Interpret


While reading Web or app Question: What are you doing? Answer: I’m reading the newspaper


Why “newspapers”

We can’t win as “newspapers” Can’t change market perceptions (“Big Tobacco”?) Can’t attract enough major advertisers Can’t enthuse shareholders Can’t attract young readers


Skill sets for “newsmedia” Next-generation data analytics OK, “customer intelligence”

Deep understanding of consumer behavior

Integration and cross-selling

Rapid digital adoption

Fast product development


What drives value historically 1980s: steady profit, long-term (success) 1990s: growing profit margins (success) 2000s: top-line revenue growth (fail)


What drives value in 2011-2012 A growth storyline of any kind Digital revenue growth Demonstrate multi-media foundation

Culture change foundation for

multi-media revenue growth story

About INMA

Non-profit association

Sharing ideas

Inspiring change

6,000 executives

400+ news companies

80 countries

Our members

North America Newspapers: 1,577

Latin America Newspapers: 1,400

Europe Newspapers: 2,398

Africa Newspapers: 400

Middle East Newspapers: 272 Asia

Newspapers: 5,071

South Pacific Newspapers: 89

Global news industry


INMA priorities

1. Practicalities of culture change

2. Making money from mobile

3. How to sell multi-product subscriptions

4. Innovative advertising solutions

5. Clubs/communities: engagement/$$$

Chosen by INMA members, 2011-2012


This presentation 1. Breaking through newspaper culture

2. New business models and innovations

3. Digital product innovations

4. iPad and the mobile moment

5. Newspapers and social media

Overriding issues facing publishers

Identifying growth

Being more relevant

Managing complexity

Newspaper content equal to TV, blogs

4 of 5 prefer screen access to content

Low value: original content, objectivity

Rising preference: short-form content

Comfort: many media choices

Lack of trust: role of editor

Gen Y influence

Past to predict future = low growth

Can’t follow change

Shape the change

Clark Gilbert: We have 3 years

Overriding issues facing publishers


Growth levers for news publishers Operational efficiency

Superior competitive strategy

Best practices

Sales excellence

Motivation

Culture change




Best practices

Sales excellence

Culture change

Motivation




Best practices

Culture change

Sales excellence

Motivation




Culture change

Best practices

Sales excellence

Motivation


Split views on culture change Sell harder

Cycle will return

Quit whining

“Change” is passe

CEOs snicker at it

Change faster

Cycle won’t return

Keep up drumbeat

“Change” is vital

CEOs: growth path

“Keep up the pressure”

What newspaper CEOs tell INMA (privately)

Google macro-culture

Eric Schmidt: massive changes in media, technology in next 18 months

Google way:

Speed over perfection

Low-cost innovation

Placing many small bets


Google micro-culture

Hire people smarter than you, get out of way

Hire generalists to deal with “what’s next”

When hiring, about culture fit + can-do

Don’t reward good planning, reward results

Attending meetings not getting things done

Passion: feedback, don’t take it personally

Save staff time: food, dry-cleaning, red tape

Eat your own dogfood


Culture change (us)

1. Listen to the market

2. Focus relentlessly on differentiators

3. Prioritise expenditures to USPs, cut rest

4. Go where the growth is

5. Speed over perfection

6. Be willing to fail, but fail fast

7. Respect platform for its unique value


Culture change: only path to growth 1. Operationally excellent

2. Raw content engine good enough

3. Structural advertising vs. order takers

4. Must change how we pursue revenue

5. Must change industry perceptions


Faces of culture change 1. Evergreen task force Globe and Mail

2. Designated instigator Postmedia Network

3. Dominant CEO Journal-Register

4. Part of human resources fabric Jawa Pos

5. De-centralised incubation Mecom


New news ecology JOURNAL-REGISTER COMPANY | UNITED STATES

What customers want on platform of choice

Prioritise platforms by velocity (fast to slow)

Cut legacy costs: infrastructure

Business plan changes valuation metrics (25%-50% of EBITDA from digital)

50/50 Project Owned by Mecom

23,000 daily circulation

90% time print, 10% digital

Rapid digital growth

Employees tell corporate: digital where we will grow

FREDRICKSTAD BLAD | NORWAY

Everyone resigned

Re-applied print/digital jobs

Ad reps print/digital

Multi-media reporters

Local citizen journalists

50/50 Project FREDRICKSTAD BLAD | NORWAY

Digital 20% revenues

Print revenues same

Identified path to growth

Had to transform culture

Model elsewhere in Europe

50/50 Project FREDRICKSTAD BLAD | NORWAY

ECOlab Inter-disciplinary teams for projects

Solve problems, growth opportunities

A place to research, think, explore

Shielded from routines, culture of “no”

Criteria: specific, measurable, timely

EL COLOMBIANO | Colombia

Brand academy

Teaches newspaper executives

How to build, manage brands

Product development process

All departments

SCHIBSTED | NORWAY

Digital, cultural, brands

23 transformation projects

Cross-functional teams

Cuts vs. product/audience

POSTMEDIA NETWORK | CANADA

Transformation project

Targeted strategy TORONTO STAR | CANADA

Newsroom: cut 70 jobs, 2x investigative

Outsourced pre-press

Outsourced retail/classified ad sales

Focused on major customers, agencies

Increased marketing expenditures

TORONTO STAR | CANADA

Print ad reliance: 80% to 40%

Maximize price for all content

Expand digital communities

New business development

Diversify revenue streams

Be true to your USPs DESERET MEDIA | UNITED STATES

Family

Finance

Responsibility

Faith-based

Education

Care for the poor

Values in media

Capital structure = culture change Journal Register: reports to banks

The Guardian: trust

Toronto Star: trust

Deseret Media: part/Mormon Church

Culture trumps strategy

Mecom/Edda Media: 50/50 Project

Journal Register: digital-first

Deseret Media: divorce digital from legacy

Print culture 95% of labor, overhead allocated

Operations, production, management

Incremental, defense, thorough

All things to all people

5% left for everything else

Digital culture 50% overhead, 50% “everything else”

Innovation, strategy, marketing, research

Willingness to fail

Offense

Speed

Key industry tension Integration is future

Solutions provider

USP on content

Print holds back digital

Mixing cultures toxic

Too many print people touching digital

Not enough digital people touching print

Key industry tension

Print

PEW | USA

Read a newspaper yesterday

38%

30% 26%

Web 9%

13%

17%

2006 2008 2010

Growth opportunities Trends point news industry to sub-optimal business models

Re-frame trends, co-mingle trends

Create more favorable outcomes

Growth opportunities


Where culture change points us 1. New perception by market

2. Leverage value of being multi-media

3. Rapid product development

4. Greater response time to changes

Business models and “newspapers”

Print to digital Killed print daily to focus Web-first

Launched weekly magazine (75,000)

Daily paid e-newsletter (3,500)

CSMonitor.com (6,000,000 uniques)

Web traffic tripled 2009-2010

CHRISTIAN SCIENCE MONITOR | USA

Paid to free Beloved, local, London

Long circulation decline

2 free P.M. dailies close

Convert: 200K to 700K

Profitability in 2012

EVENING STANDARD | U.K.

Young eats old Clever, creative, declining

“i” at 20% of cover price

Packaged, miniaturized content

“i” soars: 175,000

Cannibalizes by 3,000-5,000

THE INDEPENDENT | U.K.

Impact ad pricing Abandons traditional advertising formats

Rates based on impact/ROI

Methodology: national survey + competitor rates + position + size

DE PERSGROEP | BELGIUM

Bullseye game Based: newspaper sections

4,000 questions, 8 categories

€6 single-copy + newspaper

Sales up 10% per campaign day

96,000 game categories sold

30% share of knowledge games

EKSTRA BLADET | DENMARK

Newspaper-branded sports bar Partners with bar owner, no-cost

Football-crazed young readers

Bait for subscription campaigns

Advertisers jump on board

THE NEW PAPER | SINGAPORE

Why “newspapers” Digital product

innovations

Less interested in changing shape of audience

More interested in changing shape of attention

Battle for attention

“It’s not how much content you push to the market, but how much reader attention you earn and depend on.”

— Seth Godin


Paywall overview Changed debate: right vs. wrong

What fits business model, culture Guardian

Metered model = wide adoption FT, New York Times

Hundreds paying vs. thousands viewing

Leverage eyeballs to transactional model Ringier

English Premier League site

Doubled engagement in niche

2,000,000 uniques monthly

Revenue: memorabilia, t-shirts, fantasy football, books

Football community DAILY MIRROR | U.K.

Weight: 200,000+ members @ €10 per month

Results: Profit margins of 50%

Key: No. 1, 1st-to-market, best

AFTONBLADET | SWEDEN

Weight loss club

Local entrepreneurs

Facebook-like social media site

Focus on 20,000 SMBs, reached 50%

Entrepreneur’s challenges, successes

New revenue from books and events

Inexpensive: existing CRM, open-source

MEDIAHOUSE LIMBURG | BELGIUM

University partnership

Prepare New York elections

Puzzles, jigsaws, games, quizzes, QR codes, hunts

600 players, 250,000 views

DEMOCRAT AND CHRONICLE | USA

Election game

Newspapers and the iPad

Game changer isn’t the iPad Mobility

Social connectivity

Engagement

Wireless broadband

Where news fits on iPad

Games

Books

Music

Shopping

News/headlines

62%

54%

50%

45%

45%

Nielsen survey of iPad owners

Publisher iPad insights FREEDOM INTERACTIVE | UNITED STATES

iPad users want more hyper-local, interactivity, relevant ads, magazine-like hybrid

Publisher iPad insights AXEL SPRINGER | GERMANY

Appeals to print readers used to subscription model, looking for print-like product

Appeals to young urban consumer who has never read print

Publisher iPad insights NEW ZEALAND HERALD | NEW ZEALAND

Pages viewed on iPad per session 3x that of mobile platform, 50% higher than Web site

Click-through rates 4-10x higher on iPad than on Web

Publisher iPad insights USA TODAY | USA

iPad fills niche for people who want access to quick, easy Internet with a more personal device

Publisher iPad insights TELEGRAPH MEDIA GROUP | U.K.

84% men, average age 47 (vs. 57 for print)

25% buy print newspaper but not every day

High-income pros with more money than time

Not looking for real-time news: video, graphics

Dating

Dining out

Parenting

News

Focus on paid apps SYDNEY MORNING HERALD | AUSTRALIA

No apps: smaller newspapers

Aggregate across properties

Example: recipes from NZ Herald, NZ Women’s Weekly, magazines, local newspapers

Aggregate across group

APN | NEW ZEALAND

Where iPad fits in lives

Second screen in home

Niche device in transit

Lean-back immersive experience

Disappointment?

Newspapers and social media

Find your voice

Figure out how that voice is social

Social media an issue of relationships

Platforms, devices secondary

Building a soul for social media

Recommended content Content recommended by friends 3.7 times more engaged

Advertising recommended by friends 5 times more engaged

Social media can’t be about “set and forget”

Perceived personal touch

Requires proper resourcing

Don’t automate social feeds

One-third insights

One-third conversation

One-third general announcements

Social media beyond broadcast channel

Train employees on social media

CHICAGO TRIBUNE | USA

Training 1,000 employees to use Twitter effectively

Effort led by social champion

Explosive growth in smartphones, tablets in next 3 years

Individually, 2 trends are big

Combined, transformative

Social media and mobile

Conclusion

Marketing newspapers

No longer destination purchase (producing and distributing important)

Now highly discretionary purchase (selling and marketing important)

Re-create demand for products

What companies sell

P&G: shampoo shine to confident and sexy

Disney entertain to make dreams come true

Apple: make products that people will love

Not content but convenience and delight

Not the news, we help improve people’s lives

Transport hearts, minds to world of discovery

What newspapers sell

Marketing focus What makes brand unique

Who you are as a brand

What makes you different

How to stay newly relevant

“We are losing readers not because we don’t write for them, but because we don’t speak to them and we don’t invest in understanding them.”

– Jim Chisholm, Consultant, France


1. Culture change = “newsmedia” model

2. Must change perceptions to “newsmedia”

3. Culture is crucial to new revenue models

4. News publishers at embryonic stage

5. Clear examples and models to follow

6. New value: products, subs, social, mobile

Summary

New Oxygen New Growth

Engage with us at www.INMA.org

Earl J. Wilkinson Executive Director and CEO INMA @earljwilkinson

New oxygennewgrowth earlwilkinson

Technology

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